Conviction Capital: Redefining Investment Strategy with Vinayak Savanur

Vinayak Savanur sat across from a new prospect, Mr. Kumar, who proudly presented his direct equity portfolio.

?Vinayak : Hey Kumar! I noticed you have quite an interesting mix of stocks in your portfolio. But I couldn't help but wonder about your investment in Yes Bank Ltd.

?Mr. Kumar: Oh, Yeah, I've got some Yes Bank shares in there. I've been following the advice of friends, watching business channels, and all that. And I'm pretty confident Yes Bank will reach ? 300-350 levels in the next 10-15 years.

Vinayak : That's quite an optimistic outlook! But let me ask you something. Yes Bank is currently trading around ? 25, right? So, if it indeed reaches ? 300-350 levels, you'll make around 12x to 14x returns on your investment. But here's the thing, you've only invested Rs. 25,000 in it. Even if it hits those levels, you'll only end up with around ? 3-3.5 lakhs. That's not exactly life-changing money, is it?

?Mr. Kumar: Hmm, I guess you're right. I never really thought about it that way.

?Vinayak: Exactly. The lesson here is that when you have strong convictions about a stock, you should consider betting big on it. Imagine if you had put a significant portion of your portfolio, say, even complete ? 10 Lakhs into Yes Bank and it did reach those levels. You'd be looking at making ? 1.2 crore to ? 1.4 crore. Now, that's some serious money that could truly change your life.

?Mr. Kumar: Wow, I hadn't thought about it from that perspective before. You're absolutely right, Vinayak. I need to start considering my convictions more seriously when it comes to investing. Thanks for the eye-opener!

?Vinayak: No problem at all! That's what I'm here for. Let's work together to build a portfolio that aligns with your convictions and financial goals.